JP Chauvet of Lightspeed Commerce On The Top 5 E-commerce Trends Shaping the Future of Online Shopping
An Interview With Francois Marchand, Editor of The Ecomm Manager
The physical world is going to become behavioral. What this means is all the tricks we have in the online world will be applied to SMBs in the physical world. Companies that continue to dominate will be those that leverage behavioral data. These sophisticated tactics used to only be accessible to the big fish. All the insights large corporations currently have online will become something that can be applied in the physical world for smaller businesses. For example, if you look at the ecomm world people often fixate on cart conversion. But what’s truly powerful is how analytics will move from online to instore. From credit card insights to past purchases based on suggestions, everything that is assisting conversion rates online is going to be moved to store level.
As e-commerce continues to grow exponentially, businesses must stay up-to-date with the latest trends and innovations to remain competitive in the ever-evolving online shopping landscape. In this interview series, about “Top 5 Ecommerce Trends Shaping the Future of Online Shopping” we are talking to e-commerce experts, industry professionals, and thought leaders with in-depth knowledge and experience in online shopping trends. As a part of this series, we had the pleasure of interviewing JP Chauvet.
JP Chauvet joined Lightspeed in October 2012 as Chief Revenue Officer. He became a board member in September of 2013 and was named to the role of President in April 2016. During that time, Chauvet has been integral to the vision and strategy of Lightspeed, including its strategic acquisitions, listings on the Toronto Stock Exchange (TSX: LSPD) and New York Stock Exchange (NYSE: LSPD), and the launch and growth of its Lightspeed Payments platform. Chauvet was named CEO of Lightspeed in February 2022.
Thank you so much for your time! I know that you’re super busy. Before diving in, our readers would like to get to know you. Can you tell us a bit about your backstory and how you grew up?
From an early age, I knew I wanted to lead and work for myself. I’ve always had an entrepreneurial mindset — I like to see where issues are and I like to fix them. My strength is understanding how a product goes to market, how to make money and drive value. Even as a child I had an entrepreneurial spirit. At boarding school, I set up a small side hustle selling snacks to other students as an alternative to the abysmal cafeteria food! This continued into my teens, when I imported Dr. Martens in bulk to France where you couldn’t find the brand.
What led you to this specific career path?
When I graduated, my first job was as a product manager. This was at the beginning of the internet boom. Living and working in a variety of continents — North America, Europe, Asia, Australia — I’ve continued within the technology industry with a focus on growing companies.
Can you share the most exciting story that has happened to you since you began at your company?
Everything’s been exciting! Seriously. When I joined, Lightspeed had just received millions in funding, but revenue had been plateauing for about a year. Working alongside the team, we had record breaking month after record breaking month at Lightspeed for 2 years straight. We were always breaking the numbers and celebrating these wins like crazy. Nothing was ever “normal” in this respect. The second proudest moment was around the time Lightspeed was being introduced to potential buyers. Dax, the founder and former CEO, and I didn’t want to sell. We came up with a strategy and started meeting with Quebec investors to continue on the path as an independent and Canadian company. We ultimately went public as one of the highest tech IPOs in Canadian history and are now also listed on the New York Stock Exchange.
What are some of the most interesting or exciting projects you are working on now? How do you think that might help people?
Right now at Lightspeed we are focused on our Unified Payments offering. Our customers are navigating the ever-changing world of digital payments, and we are busy trying to make this as easy for them as possible. This helps our customers in many ways and helps them focus on their customers rather than the headaches that go along with payments processing.
You’re a successful business leader. What are three traits about yourself that you feel helped fuel your success? Can you share a story or example for each?
Relentless. My most marked characteristic is that I am relentless. When everyone feels tired, I’m never tired. That quality along with knowing how to surround myself with very smart people — the right people. Lastly, my background is fairly international, and I’ve lived in a variety of countries. I have lived and traveled everywhere. And this quality to be able to easily blend and connect with people is helpful in business and in life.
Excellent, thanks so much for sharing that. I want to shift gears and talk about ecommerce. What was the original vision for your ecommerce business? What pain point(s) were you trying to solve for your customers?
Lightspeed began as a technology company focused on helping physical (brick and mortar) businesses. As consumer expectations evolved over time, we also evolved to help our customers succeed as omnichannel businesses. Balancing between e-commerce and brick and mortar is often a challenge, particularly for smaller businesses who are new to the online commerce world. Our solution helps them have the best of both, while bringing them together to seamlessly run their businesses in both “worlds.”
How do you see the ecommerce industry evolving in the coming years?
I see e-commerce continuing to grow. We love the ease of e-commerce. When it comes to commoditized goods like toilet paper and cleaning products, there’s nothing exciting about purchasing them. In these instances, more often than not we choose the path of least resistance. For these items e-commerce will continue to grow.
How do you balance the need for innovation and experimentation with maintaining a stable, reliable ecommerce infrastructure?
We have spent the last several years acquiring cutting-edge technology for the ecommerce business and have now rolled out two flagship platforms — Lightspeed Retail and Lightspeed Restaurant. Both of these platforms are the culmination of some of the greatest technology minds coming together to create the best solutions for our customers. We are constantly innovating because we know our customers are doing the same. We are continually gathering feedback from our customers on features they need and want and implementing new features with each update to our platform. We need to evolve as the industry does!
Ok super. Here is the central question of our interview. What five emerging trends do you believe will have the biggest impact on the future of online shopping? Please explain each in detail.
1 . The physical world is going to become behavioral
What this means is all the tricks we have in the online world will be applied to SMBs in the physical world. Companies that continue to dominate will be those that leverage behavioral data. These sophisticated tactics used to only be accessible to the big fish. All the insights large corporations currently have online will become something that can be applied in the physical world for smaller businesses. For example, if you look at the ecomm world people often fixate on cart conversion. But what’s truly powerful is how analytics will move from online to instore. From credit card insights to past purchases based on suggestions, everything that is assisting conversion rates online is going to be moved to store level.
What can we learn from the Amazons of the world? At the core of their success is a nuanced understanding of consumer behavior and the agility to act as an intermediary. If you understand the volume you can buy goods at a much lower price and set your margins lower. All of these types of tactics are going to be applied to SMBs and really open up more possibilities. With visibility on all consuming everywhere, across all portals, decision making can be made in a much more timely and sophisticated way.
2. Personalization
In line with the greater access to behavioral knowledge, this intel will be reflected in the level of personalization applied to customers both instore and online. With endless options to shop and compare, there’s a higher level of importance on having a unified view of the customer’s journey and making it as seamless and personal as possible. Customers are seeking not just what they want at that moment but have the expectation of brands anticipating their needs, making sound suggestions and providing an experience.
3. Flexible Payments Options
Inflation continues to be a major concern for consumers. According to a recent study by the World Economic Forum of 36 countries, 7 out of 10 people see costs continuing to rise in 2023. With cost concerns top of mind, credit card use will rise as well as alternative credit solutions like Buy Now Pay Later (BNPL) models — as individuals seek options with wiggle room. If you don’t currently offer BNPL, consider providing more flexibility. Lightspeed, for example, has built-in layaway/layby capabilities and integration with “buy now, pay later” solutions like Klarna that enable our customers to offer payment options and greater possibilities to their shoppers. The reality now is that payment options are no longer a “nice to have” but an expectation.
4. A Return to Local
There’s a growing demand for specialty items — and these days there’s truly a niche for everything. Things that are curated require a closer examination. Ecomm may be used as a tool but if there’s an opportunity to pick it up locally — that’s the option many will continue to take. I personally love a specialist. If there’s a goodI’m really interested in, I want someone that I can discuss it with prior to purchasing. My prediction is that e-commerce will continue to grow but drive foot traffic for local businesses as people seek specialty products. There’s going to be a return to the craft and this craft will be visible online but pursued in person.
5. A Two-Speed Society
We are heading toward a two-speed society. As we’ve become increasingly connected in the digital world, we’ve become more and more lonely in the real world. It’s inevitable that a reactionary response is building momentum. After a period of enforced isolation — we’re all pursuing ways to reconnect and foster deeper bonds. Of course, technology won’t slow down nor will people give up their conveniences. As people strive to create connections, their values will extend into their day-to-day choices to reflect this importance. I’ve always believed in the importance of the stores and restaurants as a vital source of community and energy in neighborhoods. These spaces become hubs for people to congregate and this just makes us happy. Businesses need to never lose sight of this and focus on the heartbeat of their space — creating and cultivating connections with the people who walk through your door.
Is there a past trend that’s now common practice in ecommerce that you would have spent 50% more time focusing on? Which one and why?
When the internet started, everyone had this vision that you went to a website to shop. You had to have a website. But we see that it’s just not true. We got it wrong. We’ve come to see that as consumers we use a variety of portals, from TikTok and Instagram to email marketing and even reddit reviews to gather the necessary information on our consumer journey. We shop from every platform. Commerce gets embedded everywhere.
You are a person of significant influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
I am very attached to the sea. I grew up near it and I love diving. It’s so sad how we have massacred our waters through pollution. People have used the sea as the garbage can of the world and there needs to be way more regulations. Boyan Slat is doing inspiring things. Slat is the CEO and founder of The Ocean Cleanup. Their focus is on cleaning plastics from our oceans. Definitely worth a follow to see and support the incredible work being done.
How can our readers further follow your work online?
You can find me on Twitter and LinkedIn and I invite you to come visit us at Lightspeedhq.com. There’s lots of exciting things on the horizon!
I want to thank you so much for your time and for sharing your expertise with us. I wish you continued success!
About The Interviewer: Francois Marchand is the editor of The Ecomm Manager. Throughout his 20+ years in journalism, communications, and marketing, Francois has created and managed high-value content for Postmedia, Vancouver Film School, and Unbounce. He loves helping business leaders grow their skillsets and knowledge base to stay ahead of the competition. Visit The Ecomm Manager: theecommmanager.com
